The retail business community often complains about the steady decline in selling over the last few years. On the other hand, consumers argue that most retail businesses have failed to adapt to the changes brought about by evolving living styles and the progress of technology.
Reconciling these different perspectives is a challenge that has to be addressed so that the role of the retail sector in the economy continues to be relevant by serving the needs of the modern consumer.
The recent government decision to allow retail outlets to open on public holidays is a significant step in putting new life in this traditional channel of delivering goods and services to consumers. The meaning of this measure goes beyond the saving of the €700 special licence fee that previously had to be paid by shop owners to be allowed to open their premises on public holidays. More importantly, it signifies a political will to liberalise this business sector and allow practices that have been followed for several decades in most European countries and in the US where the customer is really considered king.
The consumer of the new millennium is increasingly aware of the choice one has to secure most of the goods and services that one needs on a regular basis. E-commerce has revolutionised the way we can buy certain goods at the most competitive prices and with the least hassle have them delivered to our doorstep.
Yet, many still find that visiting a shop to purchase the items that they need a soothing experience. If only shops were more accessible, offered better choice and were open for longer hours, especially on days when most people have free time available. Retailers here may never be able to advertise that they are “open all hours”, as the amiable Arthur Arkwright did in the UK comedy series of the 1970s, but they can certainly adopt strategies to lure more people to spend money in their shops or through their online sales websites.
The financial services sector in Malta has shown how the retail services revolution should be conducted. In the early 1990s, banks in Malta invested heavily in developing electronic retail delivery channels to satisfy their customers’ needs. There were ATMs that dispensed money on demand at any time of the day. Then came the era of internet banking that enabled thousands of customers to conduct most of the basic banking services, like paying bills, from the comfort of their homes. At the same time, banks opened some of their branches for longer hours to cater for the needs of those customers who sought a face-to-face meeting with a bank official to get the service they require.
If retail businesses are to flourish, they need to adopt a “clicks and bricks” strategy that delivers services to clients in accordance with their needs and preferences. Apart from the banking sector, this strategy has, so far, not been widely adopted partly because of the conservative mindset of most retailers and also because of the significant investment that is needed to introduce e-commerce at a viable level.
Trade unions may have some reservations about these developments. Retail business employees are among the lowest paid and least protected. It is, therefore, essential that employers invest more in the training of their staff to upgrade their skills and the government must ensure that the laws against workers’ exploitation are enforced. But progress cannot be stopped.